Equity benchmarks tumble on global cues

India’s equity benchmarks, Sensex and Nifty, plunged due to the dismal performance of auto, telecom and banking stocks. The Sensex slumped 624 points today, one of the biggest drops of this calendar year; while Nifty stooped below 10,950.

The absence of significant fiscal stimulus from the government to arrest an economic downturn and the lack of a timeline for the same, coupled with the weak economic situation globally, is making investors wary of making any fresh investments. A major crash in Argentina’s peso has also prompted investors to look forsafe options like bonds. On the domestic front, India’s industrial production growth slipped to a four-month low of 2% in June due to poor performance of mining and manufacturing sectors. Macroeconomic factors also play an integral role in shaping the way these indicators function.